Hurricane Harvey A major blow to the auto market in US

Hurricane Harvey A major blow to the auto market in US

In the aftermath of the destruction caused by Hurricane Harvey, it is estimated to have destroyed more vehicles than any other natural disaster in U.S. history.

According to automotive data firm Black Book, the storm is expected to ruin up to one million vehicles along the Texas Gulf Coast. It further suggests that one in every seven cars may have been destroyed.

As the chief economist at the Cox Automotive, Jonathan Smoke notes that the total vehicles damaged by the hurricane Harvey will be more severe than Hurricane Rita and Wilma. He added that 300,000 is "a fairly conservative estimate" whereas 500,000 is "not impossible either."

More than 500 dealerships in the Houston area are reportedly affected by the worst hurricane in the U.S history. In the short term, U.S. auto sales are most likely to take a nasty blow.

According to estimates, automakers sold tens of thousands fewer vehicles than expected because of the hurricane. Harvey represents about 1/3 of Texas sales, which totals to 9% of U.S. sales. The disaster is most likely to boost auto sales in the fall, with a specific rise in pickup trucks and SUVs as Houston is renowned as one of the largest buyers of large vehicles in US.

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